Popular payment methods in Europe in 2022

Payment methods are an integral component to the success of ecommerce businesses. Knowing which payment methods are preferred by customers can increase conversion for online stores. Genome, a Lithuania-based financial platform, made a list of the current trends and most popular methods in Europe.

The payments industry is always moving forward, and because of covid businesses had to adapt and move online when the lockdowns hit across nations in 2020. The pandemic itself boosted payments trends. Lithuania-based financial platform Genome listed the biggest changes and state of the market around Europe.

Electronic payments becoming more common, an increase in mobile payments and digital wallets use, the implementation of contactless payments in non-retail settings, to name a few. In countries where cash-on-delivery remained popular, customers had to use payment terminals the delivery agents bring or order delivery to lockers to avoid using physical money.

Ecommerce payment methods on the rise

Financial services turn more digital day-by-day, allowing for quicker, more user-friendly features for customers and new players to arise. In Europe, the Payment Services Directive Two (PSD2) implementation contributed to this significantly. The Directive prompted the adoption of Online Banking tools and strengthened online shopping security. With these, clients can now utilize third-party providers for more convenient and safe banking services.

‘The PSD2 has strengthened online shopping security.’

For merchants, this can be an efficient way of running their business, as companies like Genome offer the tools necessary for accepting payments across Europe in different currencies. All the major payment methods are available within one financial system. That way, the ecommerce business doesn’t need to connect each of them separately, connecting with different acquirers in search of more options.

Current popular payment methods in Europe

It is expected that  more third-party payment services will appear after PSD2 enabled the Payment Initiation Services (PIS) to simplify electronic transactions. But what are the current preferred payment methods in Europe?

The UK

Customers from Great Britain still prefer using debit and credit cards when making online payments. No wonder, as 69% of adults own credit cards. Ecommerce merchants also push cards as the payment methods of choice hard: 99% of them offer clients to use either Visa or Mastercard. Over 60% accept American Express, too.

‘Customers from the UK prefer debit and credit cards.’

Nonetheless, the usage of digital wallets has also grown in popularity recently. Digital wallets are even predicted to rival cards on the payment methods market in the future. For now, the most common options are PayPal, Google Pay.

Germany

Open invoices are prevalent here, its popularity is only expected to increase to 35% by 2023. Apart from it, companies that sell online also frequently offer clients to pay with Visa, Mastercard, the cash in advance option (66%), digital wallets, and Sofort payment service.

Other common online payment methods include the local Giropay, Girocard and paydirekt, Apple Pay, Sofort, Klarna, Splitit, PayPal.

Spain

For now, debit and credit cards remain the payment method of choice for most of the population, although digital wallets come in second. It is expected that by 2023 the cards’ popularity will start decreasing, with digital wallets and bank transfers starting to take over. Among notable digital wallets are PayPal and Apple Pay, as well as local options BBVA Wallet and CaixaBank Wallet.

France

Overall, cards dominate the French online payment methods market. Customers often use the national Carte Bleue. Other card types are less popular, but still there, like American Express and Visa. Digital wallets aren’t as common, mainly utilized in mobile commerce. Among popular options are PayPal, Paylib, Lydia, Amazon Pay.

Italy

Surveys provide different data on the Italians’ ultimate preference in ecommerce payment methods. Credit/debit cards (Visa, Mastercard, local CartaSi) and digital wallets (PayPal), share the top of the rating.

‘Credit cards and digital wallets share the top of the rating in Italy.’

Before the pandemic, Italians used cash pretty often, but now they have to use a more digital approach. Still, cash on delivery ecommerce payment method features on the country’s websites. Bank transfers are forecasted to become more common for online shopping in 2 years.

Romania

It is one of the countries where the pandemic had a massive effect on cash usage. The number of people paying physical money decreased from 45% to 21%. Meanwhile, the popularity of contactless cards reached 59%.

‘Cash-on-delivery remains popular in Romania.’

Prepaid cards are the most common ecommerce payment method, with mobile payments following quite behind, but in the second place nonetheless. What’s interesting is that cash-on-delivery remains one of the popular payment methods, while residents of countries we’ve discussed earlier don’t use it as eagerly.

The Netherlands

Most customers prefer the local online payment solution iDeal, which spread all over the country in recent years. Digital wallets and cards take second place – Mastercard, Visa, and PayPal are people’s favorites. The Netherlands is very diverse when it comes to the type of ecommerce payment methods. Direct bank payments, invoices, post-payment options (Klarna, AfterPay), and cash on delivery are available.

Poland

Direct bank transfers via Przelewy24, BLIK, PayU are what multiple customers from Poland choose when shopping online. Debit and cards (Mastercard, Visa) are less favorable. Digital wallets like Apple Pay, Google Pay, PayPal, and a local YetiPay are a bit less common, but prevalent nonetheless. As in the case of Romania, cash-on-delivery remains one of the options people tend to come back to. Online payment methods such as Paybynet and BLIK have their demographic here too.

Sweden

The Swedes are open to multiple ecommerce payment methods. It’s Klarna BNPL, of course, followed by invoices and cards (Visa, Mastercard, Eurocard). And overall, online shopping is extremely common in the country, some of the relevant payment methods are Trustly, Swish, Tink, Qliro, Neteller, Skrill, Klarna, etc.

Finland

Here the survey data shows various results as well. All the main options are used commonly: bank transfers, digital wallets, and cards. Some of the main payment methods used are Trustly, Klarna, Zimpler, and MobilePay. The number of online payments made via bank transfers is expected to only increase by 2023, not without the help of local Verkkopankki.

What it means for the ecommerce industry

As current statistics show, credit and debit cards are still kings among payment methods in multiple European countries. But what is also clear is that there’s a shift in the payment methods landscape, driven by multiple factors. The demographic for alternative payment methods in Europe increases and it is important for online sellers to use them.